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The effect of lean methods and tools on the environmental performance of manufacturing organisations

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  • Garza-Reyes, Jose Arturo
  • Kumar, Vikas
  • Chaikittisilp, Sariya
  • Tan, Kim Hua

Abstract

Evidence suggests that lean methods and tools have helped manufacturing organisations to achieve operational excellence, and in this way meet both traditional and contemporary organisational objectives such as profitability, efficiency, responsiveness, quality, and customer satisfaction. However, the effect of these methods and tools on environmental performance is still unclear, as limited empirical research has been conducted in this field. This paper therefore investigates the impact of five essential lean methods, i.e. JIT, autonomation, kaizen/continuous improvement, total productive maintenance (TPM) and value stream mapping (VSM), on four commonly utilised measures for the compliance of environmental performance, i.e. material use, energy consumption, non-product output, and pollutant releases. A correlation analysis modelled the relationship and effect of these lean methods on the environmental performance of 250 manufacturing organisations around the world. Structural equation modelling (SEM) was used as a second pronged verification approach to ensure the validity of the results. The results indicate that TMP and JIT have the strongest significance on environmental performance, whereas kaizen/continuous improvement only showed an effect on the use of materials and release of pollutants. Autonomation and VSM did not show any impact on environmental performance. The research holds important implications for industrialists, who can develop a richer knowledge on the relationship between lean and green. This will help them formulate more effective strategies for their simultaneous or sequential implementation. The paper extends our knowledge in the lean and green field by helping us to establish and explain the given relationships between five of the most important and commonly used lean methods and the environmental performance of manufacturing organisations. No previous research had considered the studied lean methods and environmental measures of performance.

Suggested Citation

  • Garza-Reyes, Jose Arturo & Kumar, Vikas & Chaikittisilp, Sariya & Tan, Kim Hua, 2018. "The effect of lean methods and tools on the environmental performance of manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 200(C), pages 170-180.
    • Handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:170-180
    DOI: 10.1016/j.ijpe.2018.03.030
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    13. Ping-Kuo Chen & Itziar Lujan-Blanco & Jordi Fortuny-Santos & Patxi Ruiz-de-Arbulo-López, 2020. "Lean Manufacturing and Environmental Sustainability: The Effects of Employee Involvement, Stakeholder Pressure and ISO 14001," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
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    15. Kleber F. Barcia & Lizzi Garcia-Castro & Jorge Abad-Moran, 2022. "Lean Six Sigma Impact Analysis on Sustainability Using Partial Least Squares Structural Equation Modeling (PLS-SEM): A Literature Review," Sustainability, MDPI, vol. 14(5), pages 1-26, March.
    16. Frank Bertagnolli & Kerstin Herrmann & Isabel Rittmann & Tobias Viere, 2021. "The Application of Lean Methods in Corporate Sustainability—A Systematic Literature Review," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    17. Stadnicka, Dorota & Litwin, Paweł, 2019. "Value stream mapping and system dynamics integration for manufacturing line modelling and analysis," International Journal of Production Economics, Elsevier, vol. 208(C), pages 400-411.
    18. Henao, Rafael & Sarache, William, 2022. "Sustainable performance in manufacturing operations: The cumulative approach vs. trade-offs approach," International Journal of Production Economics, Elsevier, vol. 244(C).
    19. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    20. Cherrafi, Anass & Garza-Reyes, Jose Arturo & Kumar, Vikas & Mishra, Nishikant & Ghobadian, Abby & Elfezazi, Said, 2018. "Lean, green practices and process innovation: A model for green supply chain performance," International Journal of Production Economics, Elsevier, vol. 206(C), pages 79-92.
    21. Trevino-Martinez, Samuel & Sawhney, Rapinder & Shylo, Oleg, 2022. "Energy-carbon footprint optimization in sequence-dependent production scheduling," Applied Energy, Elsevier, vol. 315(C).
    22. Farrukh, Amna & Mathrani, Sanjay & Sajjad, Aymen, 2023. "Green-lean-six sigma practices and supporting factors for transitioning towards circular economy: A natural resource and intellectual capital-based view," Resources Policy, Elsevier, vol. 84(C).
    23. Pik‐Yin Foo & Voon‐Hsien Lee & Keng‐Boon Ooi & Garry Wei‐Han Tan & Amrik Sohal, 2021. "Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4136-4153, December.

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